Small Business Suffering? The Solution Is Patience!

(New Nation Newspaprer, www.newnation.com)

December 2008
WITH THE onslaught of business programmes like Dragons’ Den and The Apprentice claiming to be the voice of UK enterprise, one really has to wonder if these images are helpful or damaging to real-time business situations.

Reports show many small business owners believe not enough is being done to help them to survive, let alone succeed in business, andthis has been made worse by the credit crunch.

The government seems powerless to enforce any measurable conditions or policies on the banks to help small businesses, even though they have been bailed out by the public purse during their time of crisis.

With an all party cry of ‘foul play’ towards the banks, it will be interesting to see how they respond to these new demands for fairer and moretransparent practices to increased lending over the next few months.Ampod Business Consulting and Training Services MD Yvonne Witter, who delivers training, networking events, business growth seminars and consultation to pre-start, micro and the SME business community on behalf of local authority regeneration departments, believes that the ‘small business owner does not get the respect as a major contributor to the economy that they deserve, especially from the banking system.’

‘The first problem is that banks define a successful business as one with potentially a two million pound plus turnover, with a large work force and will therefore, marginalise smaller, local enterprises,’ Yvonne says.

‘Secondly, while businesses remain categorised by the criteria set by the financial institutions, no one wants to talk to you and no one understands your business, so you are never in a position to have your demands met.’

It has been consistently more difficult for small business owners to raise capital because there is no connection between the small business owner and the banking sector.There remains a perception that if the bank is presented with a business plan that has the potential to make quick profits, they will be seen more favourably than a smaller business looking for funding of up to £10,000 to import a product, demand for which is unknown in the UK by the faceless banking sector.These businesses are met with scepticism and sidelined because of a lack of understanding about the cultural market conditions.

‘That is not to say that we should not be concerned with financial outputs but we have to look at the social and cultural, not just the financial drivers and motivators, for starting and running a business’ Yvonne continues. ‘Many small businesses do not fit into a mainstream model of enterprise, but combined, they contribute hugely to the GDP through tax payments and employment creat ion and community sustainability.’

Insurance firm RSA reported 470,000 small businesses have already ceased trading since the credit crunch began, but this has not dampened the desire for many to start and run a business. The current government intervention fuelled by the current global economic crisis sees multi-nationals falling by the wayside, which means there is hope and more opportunities for the small businessman to succeedas banks are now being forced to look at other areas of the small business sector to save the day.

‘There are many barriers which affect many different types of businesses, especially around micro finance opportunities and the high taxation of small businesses,’ Yvonne concludes.

‘But focus on what you are good at and never stop improving your product or service and reinvest into your business especially in the early years. Be patient!’

"Reputation and credibilty for your business" by J. Germain [2/2]

Reputation and credibilty for your business.

In the current climate reputaion is everything by Judith Germain / Developping Leadership

(Source: Start Your Business, December 2008) 

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Can social networking help you build reputation and credibility in your business?

It's important that businesses establish their networking/marketing strategy so that they can decide which social networking sites they should use or maintain a presence on.

Build your credibility by whatever means and keep open minded

Social networking sites like Ecademy can enable businesses to build reputation and credibility for their business quickly. This is particularly true of Ecademy's Life Membership Community, where building advocacy is made easier due to the nature of its composition. Ecademy encourages its members to network on and offline. Sites like Linkedln  can enable businesses to build visibility and connections quickly.

There are hundreds of sites to choose from, so finding a cost and time effective way to utilise them is imperative. Your networking strategy needs to be defined to ensure consistency of your message. The use of sites such as Ecademy can help businesses establish themselves as an expert in their area of expertise. To establish yourself (or your business) as an expert using social networking sites, you are required to be visible to their membership.

It is recommended that you blog and write articles frequently, in your area of expertise, (run and join clubs structured around your them and your personal interests (thus developing an individual reputation). How you communicate and articulate your thoughts on the public and private areas of the networking sites - will guide potential clients and advocates well. Inconsistencies or extreme views contrary to your 'public persona' will do you ill and could even prohibit your ability to gain business.

Freely providing advice to others without expectation of a return helps to build your reputation as an expert and provides an informative view on your character. (This is not the same as providing free consultancy!) Participating in one-to-ones to learn how you can help those in your network can be a positive enhancement to both your reputation and credibility. The return on this activity can be immense.

With the credit crunch still impacting most industries, you need to ensure that you focus your energies on delivering a consistent and compelling reason for clients to work with you; a well defined networking strategy will help you to achieve this for very little cash outlay.

It is a solid, credible reputation (not just increased visibility) that will carry you and your business out of the crunch and beyond. So, look at the way your brand is seen by others and ask yourself...based on the information available to me, would I hire me? If the answer is no, you still need to work at something. Judith Germain is managing director of Dynamic Transitions, a leadership company, which enables their clients to develop, nurture and maintain their reputation in their chosen niche.

Judith provides strategic mentoring for senior executives and business leaders, develops networking strategy and delivers innovative leadership programmes, leadership consultancy, training, coaching and mentoring to corporate clients.

To find out more information on how to bring your business forward in matters concerning HR, management or brand building.

"Reputation and credibilty for your business" by J. Germain [1/2]

Reputation and credibilty for your business.

In the current climate reputaion is everything by Judith Germain / Developping Leadership

(Source: Start Your Business, December 2008) 

In this day and age it is becoming increasingly important to be able to distinguish yourself from your competition so that you become the 'no brainer' choice in your chosen market.

Whilst there are many factors that can distinguish you from everyone else, the deciding factor seems to be the strength of your reputation and credibility in relation to your competition. This is especially true for smaller businesses and 'one man bands' in over-populated niches.

It is essential that you are consistent with what you say and do, especially on the internet where everything that is recorded there is of a permanent nature.

Brand reputation is becoming the ultimate decision maker and to ignore this trend will put your business and earning capacity in peril.

If we agree with the premise that potential clients will only buy high ticket value services from those that they trust, it becomes imperative that businesses consider how to develop, nurture and maintain that trust. The next consideration is to decide how to do this in the most cost-effective way for their business.

This may mean foregoing expensive marketing activity that only increases the business' visibility, but does nothing to lessen the risk of hiring the company.

This 'risk' perceived or otherwise, is continuously assessed by potential clients prior to them making the decision to hire you. The oft quoted maxim of 'the client needs to be 'touched' by you 7 times before they buy', is derived from this premise.

Credibility equals less risk

Lessening the risk of a client hiring you is especially important if the business has decided to use 'pull' rather than 'push' marketing as a strategy for their business. For example, 'push' marketing is where the business advertises its services to its target audience, unsure of whether they are looking for their expertise.

'Pull' marketing is where the potential client 'pulls' your services when he needs it - without specific advertisement. He might decide to use your service based on a referral from an advocate of yours. This means advertising spend has not been made to secure this client.

Those that rely on referrals or social networking to secure work will realise that the most cost-effective way to gain new clients is to use 'pull' marketing techniques to gain business.

First things first

Before building your reputation in your chosen niche you need to first understand your current position. An audit of your situation should reveal (amongst other things); your standing in relation to your competitors, whether your reputation is earning you enough referrals and if your business message is coherent across all your markets.

It’s important to ensure that your current business strategy (including networking strategy) is consistent with the reputation that you have and are building.

Reputation is personal in its nature, concerning itself with the character of the business (or person) and the intention of its (their) actions. It is essential that you are consistent with what you say and do, especially on the internet, where everything that is recorded there is of a permanent nature.

Inconsistency can be the biggest killer of reputation as it undermines the trust that is being established between the two parties. Credibility needs to be demonstrated and is based on your track record and competency. One of the ways to establish credibility is to ensure that your expertise and integrity is demonstrated regularly and effectively.

This can be done by providing expert opinion, a positive and strong personal brand, social proofing and having a strong trust account. This allows potential clients to sample your expertise enabling them to advocate your services or hire your business. If your business (and/or yourself) has a good reputation and credibility, it is more likely to be trusted by your potential clients, therefore increasing your revenue and sustainability. A trust account balance reflects the amount of trust in the relationship at any given time.

“It is a solid, credible reputation (not juts increased visibility), that will carry you and your business out of the crunch and beyond”

In anyone relationship there are two accounts. How we perceive a trusted relationship say one with a client; may not be the same as they see it. It would be wise to try and understand the balance that is held in each account.

Entrepreneur: Nadine Harding / Curl Harmony

Hair care harmony: How to keep your curls in harmony

Olivia Benson (Manchester Evening News)

AFTER years of `going straight' with her hairstyle, Nadine Harding decided it was time to stop damaging her locks. However, following a fruitless search for products to keep her curls in top condition, she decided to launch her own hair care range.

Nadine, a former chemist who studied at the University of Manchester, has set up Curl Harmony, which sells products that are handmade from natural ingredients and are designed specifically for Afro-Caribbean hair.

Twenty-seven-year-old Nadine established her Manchester-based business after being made redundant from her job at a scientific instrument manufacturer. She says: "I thought of the idea after looking for natural products to use on my hair. I'd been straightening it for many years using relaxing treatments which contain a number of chemicals and, as a result, my hair had become very dry and brittle.

"When I failed to find suitable products for Afro- Caribbean hair, I decided to have a go myself." With a £5,000 bank loan, Nadine set up a laboratory in her spare room and set to work sourcing the ingredients and making the hair care products.

Natural

The Curl Harmony range includes conditioners, shampoos, oils, clays and styling products which contain ingredients such as coconut oil, jojoba oil and shea butter. They retail from £7.50 to £14 and are sold through Nadine's website (curl harmony.co.uk), wholesalers and other internet outlets that sell natural beauty products.

Nadine says that Curl Harmony products are the only ones that contain natural ingredients, are handmade in the UK and are aimed at the Afro- Caribbean market. She says: "There are a number of specialist stores that sell chemical-free products but these are predominately imported from America, where they are very popular.

"There are also many products in the UK market that are aimed at Afro-Caribbean hair, but these contain chemicals. I believe that Curl Harmony products fill a gap in the UK market."

Nadine says the business is set to generate turnover around £16,000 in its first year, and already she is making a profit. She hopes her products will one day grace the shelves of mainstream retailers.

Sheila Elliott’s Tips for success

Sheila’s Tips for success

(Source: The Voice)

BE CLEAR

The very first thing you need to do before you set up a business is to be clear about your vision, because all too often people go into business without having a clear vision about what it is that they really want to do.

BE PASSIONATE

You need to be passionate about what it is that you’re doing because business has its peaks and through and when you start your business it’s passion that will enable you to drive it forward

GET TRAINED

You have to make sure that you have adequate training. It’s nice to have free training, but very often they are not adequate, they are incomplete, and if that’s all people are relying on, then they are already on the road to disappointment.

INVESTMENT

You have to be willing to invest the time and effort in understanding what your market will actually need and not thinking that you know it all. You need to talk to people and find out what it is that they need and look at ways that you can deliver that service.

IT TAKES A COMMUNITY

Within the black community everyone is trying to do things singularly, they don't want to partner with other people. But if you look at the businesses that are actually thriving and you look at the history of black success, it started off with two people. There has to be a culture of partnership, a culture of trust, and that's a tip I would give to people.

PERSONAL DEVELOPMENT

I can't ignore the element of personal development. Very often people want to go into business but they don't want to develop themselves, and we need to get that culture right. People will buy your service, but it's not just your service that they're buying, they're buying you and your product. If you don't develop yourself, you will not be able to develop your product.

FINANCIAL KNOW-HOW

You need to understand about the financial language. Borrowing money I from the bank will involve you speaking the Language that you're not used to. You need an understanding of how the financial market works. You don't have to be an accountant to do that, you just need to understand basic financial statements.

Sheila Elliott Is the Managing Director of BSS Management Consultancy and the author of My Business Is My Business.

www.businessservicessupport. com

www.sheilaelliott.com

www.mybusinessismybuslness.com

How to build a great business / Sheila Elliott

How to build a great business

Edited by Dionne Grant (Source: The Voice)

BLACK ASIAN and other ethnic minority businesses make up nearly 20 percent of London's small business community.

Up to 60 percent of small businesses cease trading within the first five years, and this rate of failure can be partly attributed to a general lack of business expertise and understanding. Former accountant turned successful business advisor and author of book, My Business is My Business – Learn How To Earn a Fortune, Sheila Elliot shares her tips far success.

WHY DID YOU DECIDE TO WRITE MY BUSINESS IS MY BUSINESS?

The reasons for doing this book was because in the United Kingdom, despite there being a lot of growth in black and ethnic minority businesses, this did not always equal success. The London Development Agency (LDA) recently did some research that showed despite there being a lot of growth in the market among ethnic minorities, there has also been a lot of failures too. The Asian market is growing significantly within the ethnic minority market but the Afro-Caribbean and the African communities are not doing as much as they can do. The book also,

highlights a number of weaknesses and soft skills in this group.

WHY DO YOU THINK BLACK BUSINISSE AREN’T AS SUSTAINABLE AS WHIT BUSINESSES?

I don’t believe that the support out there is the right one for that particular community. There are a lot of courses that focus on the technical skills as opposed to focusing on nurturing the developmental aspects of people's lives, A lot' of people from our community know what they want to do, but they need a little bit more support and hand-holding, and that’s not necessary available through the likes of business links or the agencies, There is a little bit of coaching, but not predominant.

WHAT ONE THING PEOPLE CAN PEOPLE TAKE AWAY FROM YOUR BOOK?

The importance of attitude and technical skills as a success formula; 85 percent of our success is to do with our attitude and our relationship with one another - not necessarily how much academic qualifications you have. I would like to encourage BME (Black Minority Ethnic) communities to become entrepreneurial. They need to recognize that there is a formula to succeed in business, and they need to be willing to invest their time and thoughts into learning that formula and applying it. They need to avoid going for that short cut methodology that many people have fallen victim to, only to find themselves very disappointed the day after.

Be the Inspiration

Successful men use YouTube to reach youths

by Cecelia Layo Fadehan (Source: The Voice)

REGGAE REGGAE sauce entrepreneur Levi Roots is among 19, successful black men who are using the internet to inspire black youths.

The men have teamed up with youth mentoring scheme Reach to launch Be the Inspiration, a YouTube-based project aimed at encouraging youngsters to succeed by talking about their experiences.

"We are working towards a society where every black boy and young black man can fulfil his potential," said Reach chairman Clive Lewis.

Other men telling their stories include Colourful Radio co-founder, Henry Bonsu, actor and playwright, Kwame Kwei-Armah, and Kush Films director Marlon Palmer.

The 'Reach programme is a government-funded organisation created in response to the growing epidemic of violence among black boys.

It is the first ever national role model scheme. As part of the scheme, 20 men have been nominated by the black community to serve as role models. Their names will be announced in December. .

To. see some of the videos, go to: The Voice

Black women now outstrip whites on pay

Black women now outstrip whites on pay

David Leppard and Holly Watt (Source: Sunday Times)

The average earnings of black women in Britain are now higher than their white counterparts,
according to government statistics.

In a landmark social development that suggests the erosion of a
long-standing racial barrier, the figures show “black Caribbean” women earned on average £462 a week – 6% more
than white women – in the three months to October this year.

That is a reversal of the previous year’s figures, when white women
earned more than 7% above their black counterparts. The figures show that black
women’s earnings overtook those of white women in the first three months of
2008 and the pay gap has increased gradually since then.

The data were gathered for The Sunday Times by the Office for National
Statistics. They are based on the labour force survey, the most authoritative
and up-to-date study of pay and conditions.

Yana Johnson, a cosmetics entrepreneur [Yana Cosmetics] whose parents moved to Birmingham from Jamaica in the first wave of immigration after the
second world war, said she was pleased by the findings. “[My parents were] part
of the Windrush generation,” she said. “When that generation came over they had
to work really, really hard and they sometimes felt they missed out on
opportunities, so they were determined their daughters wouldn’t miss out.”

Colleen Harris, the first black press officer at Downing Street and founder of Dignity Management Consultancy,
which advises on equality, said she was “ cynical about the figures”. But she
added: “Black women do work very hard, and often they are the single earner in
a household and have the whole weight of a family on their shoulders.”

The Equality and Human Rights Commission said the figures may be
explained by the fact that half of all black women live in London, where average pay is higher than elsewhere in
the country.

It also said black women tended to take less time off work when having
children, meaning they suffered less of a pay penalty when returning to work. Many
work in health or social services where pay has been rising.

Black women have made other strides in recent years. There have been two
black women in the cabinet in the past decade, including Baroness Scotland, the
attorney general.

Last year 49.1% of black Caribbean
pupils achieved five GCSEs from A* to C, compared with 44.4% the previous year.
Girls do particularly well, with 56.2% gaining five good GCSEs. The
underperformance of black boys, however, is still a concern, with just 41.5%
achieving the best grades.

One Laptop per Child : Zimi's Story FULL

One Laptop per Child : Zimi's Story FULL
Uploaded by olpcfoundation

Get your message heard

Get your message heard

Making your business stand out in the crowd is the key to effective marketing on a budget" writes JAYNE ATHERTON (Source: Metro.co.uk)

Finding money to market your business can be painful in an economic downturn. Advertising budgets are among the first to feel a financial squeeze but losing touch with your customers can be an even bigger threat.

Yet small businesses are often in a better position to sell them selves effectively in a recession because they are less likely to be tied down by tradition and bureaucracy. And hard times can mean there are fewer competitors in the marketplace, which makes the job easier.

“The nervous [businesses] will be getting out of your way so there is less competition from start-ups and smaller businesses,” says entrepreneur and business, coach Jonathan Jay. “Excellent sales and marketing always wins and if you really focus on this area of your business and don't allow your attention to be diverted by other areas of your business, then you can come out of the recession stronger as a result.”

Jay, who made millions by selling a life-coaching business he set up with just £150, believes finding something in your business which makes it stand out from the crowd is key to marketing on a budget. And if you can't find something different then simply invent it.

Unique selling point

“Devising a unique selling point (USP) will help, says Jay. “ Most business will tell me they offer great service but if it’s not unique then you are needlessly setting yourself up against others on a level playing field. If your business doesn't seem to have something uniquely special then you have to be creative.”

“You could introduce, for example, a fabulous discount or an unbeatable money back offer for customers who are unsatisfied. Such an offer will get people talking and your business noticed. It shows you have confidence - although you have to be sure that the majority of your customers will be completely happy.”

Surviving a recession also involves a high degree of analysis. It’s the time for business to dust off their existing marketing plans and look at what potential customers are learning.

“It's the job of every business owner to be brutally honest about what's working and what’s not – even more so in a recession,” Jay adds.

“Sometimes the result can, mean taking a radical step and doing things differently. Business owners have to be pragmatic and speak to their customers in a language they understand”

Know your customers

Word of mouth is one of the best marketing tools but often people don't tell anyone if they are happy with a product or service, so it can't always be relied upon. “Marketing isn't just about building a brand, people have to buy stuff, too, and getting to grips with who is doing that involves tracking orders more carefully, so you get to really know your core customer, because their needs and demands can change very rapidly,” says Jay. In my experience, most business plans have been written to appeal to the bank and are hardly ever looked at again. But to market effectively in a downturn, you have to sharpen up the basics and your company needs to be able to define itself with clarity and precision, and haye that message backed up with testimonials from satisfied customers.

“This message can. then be used in every communication you have with the customer, whether it's on the phone or through a website. Check that your staff know it, too. When you get the basics right, you will start to get noticed.”

101CityDel / Oliver Parker

v  Errand service for city workers

Olivia Benson (Source: Manchester Evening News)

A FORMER architectural technician has launched an errand service for time-strapped city worker. Oliver Parker, who is from Paris and came to Britain 10 years ago, believes his business, 101CityDel.com, will prove a hit from office workers and executives alike.

101CityDel.com offers a range of services, from delivering a sandwich to your desk or a meal at home to dog walking, going to the post office, buying a gift and wrapping it, organising dry cleaning, dropping off cars and even the weekly shop.

Oliver started with two employees and has received orders from hungry workers who can also shop on his website for goods such as jewellery and electrical items. He has also secured a number of deals with restaurants to supply meals to people at work and at home.

Charges for delivering sandwiches start at £2.50, while shopping and other errands start at £9.50. 101CityDel.com will also deliver out of the city centre. Oliver says he got the idea while working at an architect's practice in Manchester city centre.

"Often, when there was a deadline to meet, I sat at my desk going hungry and regularly thought it would be great to email or call for a sandwich to be delivered." Despite the looming recession, Oliver, who has been busy delivering leaflets to companies and homes across Manchester, is confident that demand for his services will be strong.

He says: "A recession will not affect people's appetites and there will always be people who are hungry and tied to their desks, or have forgotten to buy a present for someone's birthday.

"101CityDel.com plugs a gap in the market for a quick and professional errand service to meet the needs of busy people.

Mads Kjaer, Founder and CEO of MyC4

Marcia Hutchinson / Primary Colours

Top businesswoman proves that diversity is a winner

By Maxine Myers (Source The Voice)

A BUSINESSESWOMAN whose publishing and learning development company helped thousands of children learn about and embrace cultural diversity, has been honoured for her work.

Marcia Hutchinson, founder of Primary Colours, was named Female Entrepreneur of the Year at the recently Held Yorkshire Black Enterprise Convention. “I am thrilled to have received this award,” said Hutchinson, who set up her company in 1997.

OPPORTUNITIES

Through learning resources such as books and CD ROMs, the company helps schools with diversity consultancy, training and engagement opportunities for staff and pupils. "Last year our in-school work reached over 22,000 children and 2,000 teachers, while nearly 40,000 people read our books. This award is testament to how far we have come so far," Hutchinson said.

More than 400 business representatives came out to the Leeds United Conference .centre to celebrate the achievements of the black community in Yorkshire. Andy Kemp, a member of the judging panel at this year's award ceremony, said black businesses in Yorkshire are thriving.

 

MARKETS

This year's entries graphically demonstrate the impressive rise of the region's black entrepreneurs, and that black business no longer exists in just a few niche markets. The black business community is playing an increasingly important role in providing jobs and contributing to the local economy,” he stated.

To Be an Entrepreneur

So you want to be an entrepreneur? How to decide if starting a business is really for you. Jon Gillespie-Brown - Source: Start Your Business Magazine

It may just prove to be the most cost-effective tool for the self-evaluation of budding entrepreneurs. Engagingly written and organised, the author seems to escort the reader along a rite of passage, a somewhat more light-hearted version of the Herculean tasks. "Together we will break down your lifestyle, traits and attributes," Gillespie-Brown writes, "and, just as importantly, your potential to develop these things". The approach adopted in this book consists of a series of Mentor Lessons which cover advantageous traits of entrepreneurs and how these can be developed. However, all of this is done in a way which is neither irrelevant to the reader nor in a condescending manner.

The personal questionnaires and lessons throughout do in fact feel more like an informative seminar, rather than a mundane account of entrepreneurial endeavours. The result of this combination between being both informative and highly personal, is that the reader takes in all the essential points, the excuses that hold people back from being entrepreneurs and also emphasises the need for maintaining close circles.